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Simple English definitions for legal terms
survivorship annuity
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A quick definition of survivorship annuity:
A survivorship annuity is a type of payment plan where someone agrees to pay a certain amount of money to another person every month or year. But, if the person receiving the payments dies, the payments stop. However, with a survivorship annuity, if the person receiving the payments dies, the payments continue to be made to their spouse or another person they have chosen. It's like a promise to keep taking care of someone even after they're gone.A more thorough explanation:
A survivorship annuity is a type of annuity that provides continued payments to a survivor, usually a spouse, after the original annuitant dies. An annuity is an obligation to pay a stated sum, usually monthly or annually, to a stated recipient. These payments terminate upon the death of the designated beneficiary.
For example, if a husband and wife purchase a survivorship annuity, the annuity will continue to pay the wife after the husband dies. This provides financial security for the surviving spouse.
Another example is a group annuity, which is payable to members of a group, especially employees, who are covered by a single annuity contract, such as a group pension plan. If an employee dies, their spouse may be eligible to receive survivorship annuity payments.
Overall, survivorship annuities provide a way for individuals to ensure that their loved ones are financially secure after they pass away.